Business as Usual and Prosecution of Financial Crime

hsbcThe latest fallout in the banks manipulating the LIBOR scandal were criminal charges against two UBS traders. LIBOR is a key financial rate and the Justice Department this week fined UBS $1.5 billion for rate rigging. The Japan UBS subsidiary also pleaded guilty to wire fraud.

UBS Securities Japan Co. Ltd. (UBS Japan), an investment bank, financial advisory securities firm and wholly-owned subsidiary of UBS AG, has agreed to plead guilty to felony wire fraud and admit its role in manipulating the London Interbank Offered Rate (LIBOR), a leading benchmark used in financial products and transactions around the world, Attorney General Eric Holder announced today. The criminal information, filed today in U.S. District Court in the District of Connecticut, charges UBS Japan with one count of engaging in a scheme to defraud counterparties to interest rate derivatives trades by secretly manipulating LIBOR benchmark interest rates.

The Slap on the Wrist Financial and Corporate Crime Fines

corporate alliance pledgeHave you ever noticed that large corporations can get away with pretty much anything? Over and over again a major scandal breaks and in the end the fines are pennies on the dollar for the profits gained by these nefarious financial activities.

Banks can launder money with impunity and the consequences are a small fine in comparison to the profits made. No matter how egregious there are no criminal chargers or revoking of the bank's charter.

The British bank Standard Chartered said on Thursday that it expected to pay $330 million to settle claims by United States government agencies that it had moved hundreds of billions of dollars on behalf of Iran.

At first glance the record $1.9 billion HSBC fine for laundering Mexican drug cartel money looks like a solid. Yet buried in the fine print, HSBC avoids charges via deferred prosecution.

The Latest Evildoing in Banksterdom

bankstersBanks running amok. Banks losing billions. Banks busted for fraud that went on for over 20 years. Banks overcharging customers. The hits just keep on coming. One would think, at this point, the business suit would be more a symbol of jailbirds than a uniform of respectability. Yet on and on it goes and with that we overview the latest adventures in Mafia style Banksterdom.

The headlines blare JPMorgan Chase Revives Markets when they announced a $5.8 billion dollar loss on their derivatives trades.

The largest U.S. bank tried to demonstrate Friday that the worst of the problem was in the rear-view mirror, reporting a $4.96 billion profit for the second quarter, down 8.7% from a year ago.

That's almost three times larger than the originally reported $2 billion loss and that loss could climb to $7.5 billion. What does Wall Street do with this news, why reward the bank of course!

Meanwhile new investigations against JPMorgan Chase are popping up with the bank refusing to release emails about manipulating the electricity market.

A Change to our System of Property Rights based on Political Power

robosignforeclosureSo says Roosevelt Institute fellow Matt Stoller in the below interview. Stoller is talking about the 50 state mortgage fraud settlement and frankly he's right. It's beyond belief the government has literally shoved under the rug banks improperly seizing and foreclosing on properties owned by Americans.